Discounted Cash Flow (DCF) Analysis Levered
Kosmos Energy Ltd. (KOS)
$8.175
+0.47 (+6.17%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 1,499.42 | 804.03 | 1,332.01 | 2,245.35 | 2,902.93 | 3,753.08 | 4,852.21 | 6,273.23 | 8,110.41 | 10,485.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 628.15 | 196.14 | 374.34 | 1,130.48 | 793.37 | 1,291.58 | 1,669.83 | 2,158.86 | 2,791.10 | 3,608.50 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -352.01 | -379.59 | -938 | -809.38 | -1,285.66 | -1,662.18 | -2,148.97 | -2,778.32 | -3,591.98 | -4,643.93 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 276.14 | -183.45 | -563.65 | 321.10 | -492.30 | -370.61 | -479.14 | -619.46 | -800.88 | -1,035.43 |
Weighted Average Cost Of Capital
| Share price | $ 8.175 |
|---|---|
| Beta | 2.763 |
| Diluted Shares Outstanding | 474.86 |
| Cost of Debt | |
| Tax Rate | 32.79 |
| After-tax Cost of Debt | 3.57% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 17.604 |
| Total Debt | 2,225.91 |
| Total Equity | 3,881.96 |
| Total Capital | 6,107.87 |
| Debt Weighting | 36.44 |
| Equity Weighting | 63.56 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 1,499.42 | 804.03 | 1,332.01 | 2,245.35 | 2,902.93 | 3,753.08 | 4,852.21 | 6,273.23 | 8,110.41 | 10,485.63 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 628.15 | 196.14 | 374.34 | 1,130.48 | 793.37 | 1,291.58 | 1,669.83 | 2,158.86 | 2,791.10 | 3,608.50 |
| Capital Expenditure | -352.01 | -379.59 | -938 | -809.38 | -1,285.66 | -1,662.18 | -2,148.97 | -2,778.32 | -3,591.98 | -4,643.93 |
| Free Cash Flow | 276.14 | -183.45 | -563.65 | 321.10 | -492.30 | -370.61 | -479.14 | -619.46 | -800.88 | -1,035.43 |
| WACC | ||||||||||
| PV LFCF | -273.31 | -182.91 | -210.22 | -241.60 | -277.68 | -319.14 | ||||
| SUM PV LFCF | -2,218.30 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 12.49 |
| Free cash flow (t + 1) | -1,056.13 |
| Terminal Value | -10,068.01 |
| Present Value of Terminal Value | -5,589.51 |
Intrinsic Value
| Enterprise Value | -7,807.81 |
|---|---|
| Net Debt | 2,042.51 |
| Equity Value | -9,850.32 |
| Shares Outstanding | 474.86 |
| Equity Value Per Share | -20.74 |